Scale Microgrids announced it closed a major tax equity transaction with Truist Bank to support the construction of new distributed energy assets across the U.S. Under this partnership, Truist will provide a tax equity investment of up to $150 million.
Truist’s tax equity facility will help Scale finance the construction of microgrid projects for commercial and industrial customers representing various industries, as well as community-scale solar and battery storage facilities. These projects will be built over the next 18 months across multiple states with strong market opportunities, including California, Connecticut, New York, and Pennsylvania.
The Truist partnership adds to Scale’s capital resources, building on previous partnerships with institutional investors, including a $300 million equity investment from Warburg Pincus and a project finance debt facility of up to $225 million from KeyBanc Capital Markets and City National Bank.
Scale has also accessed the tax credit transfer market in a partnership with Captona. Having partnership and tax credit transfer capabilities enables Scale to offer flexible solutions to optimize every layer of the capital stack for our customers and partners.
KEY QUOTES:
“We’re very excited to work with Truist to finance such a diverse portfolio of distributed energy assets with our largest institutional tax equity investment to date. This partnership will enable us to efficiently finance our microgrid and community scale projects to meet the increasing power demands of our customers in this new era of load growth and grid constraints.”
– Julian Torres, Chief Investment Officer at Scale
“Truist is proud to support Scale Microgrids in developing a portfolio of renewable energy projects that will provide clean power to end users such as universities, hospitals, businesses, and communities across the country. This investment demonstrates Truist’s ongoing work to inspire and build better lives and communities.”
– Chris Nygren, Head of Tax Equity for Truist Bank
